Apple reportedly shifted part of iPad production from China to Vietnam

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Apple is moving some iPad production from China to Vietnam for the first time, Asian Nikkei reports,

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Currently, the majority of the iPad supply chain is concentrated in China. Apple is reportedly interested in moving at least some iPad production to Vietnam from January 2021, but supply chain issues over the past year are said to have delayed the move. Now, Apple’s desire to move some production out of the country has intensified due to supply chain disruptions caused by lockdown measures in China.

China’s BYD, one of the leading iPad assemblers, reportedly helped Apple set up new iPad production lines in Vietnam. After AirPods, the iPad will become the second major Apple product line to be made in Vietnam.

Apple has reportedly asked several of its suppliers to create component lists for all its devices to protect them from any future shortages. The company is said to have moved quickly to secure the supply of chips for the upcoming iPhone models, particularly with regards to power management. It is also believed that Apple bears some of the transportation and logistics costs from suppliers to ensure that the materials needed for production arrive on time.

According to the report, Apple expects its suppliers to be able to make enough additional components to fully offset the shock in China in the coming months, but suppliers are said to be hesitant about slowing demand that could give them unused components. with a large stock of . , However, analysts believe the impact of the supply chain disruption remains “manageable” on key customers such as Apple, with automakers and smaller Android and PC brands being hit hardest.

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